Guggenheim Begins Coverage on Kroger (NYSE:KR)

Analysts at Guggenheim initiated coverage on shares of Kroger (NYSE:KR) in a report issued on Thursday,Benzinga reports. The brokerage set a “buy” rating and a $68.00 price target on the stock. Guggenheim’s price target would suggest a potential upside of 10.61% from the stock’s previous close.

A number of other brokerages have also issued reports on KR. BMO Capital Markets raised their target price on shares of Kroger from $60.00 to $63.00 and gave the stock a “market perform” rating in a research report on Thursday, December 12th. BNP Paribas began coverage on shares of Kroger in a research note on Friday, October 18th. They set a “neutral” rating and a $56.00 price objective for the company. Roth Mkm upped their price target on Kroger from $52.00 to $56.00 and gave the stock a “neutral” rating in a report on Friday, December 6th. Melius Research assumed coverage on Kroger in a research note on Monday, September 23rd. They issued a “hold” rating and a $55.00 price target on the stock. Finally, Morgan Stanley boosted their target price on shares of Kroger from $58.00 to $62.00 and gave the stock an “equal weight” rating in a research report on Wednesday, December 11th. Six research analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $64.69.

Kroger Price Performance

Shares of KR traded up $0.59 during trading hours on Thursday, reaching $61.48. The company had a trading volume of 961,030 shares, compared to its average volume of 4,727,497. The firm has a 50 day simple moving average of $58.60 and a 200-day simple moving average of $55.09. The company has a market capitalization of $44.48 billion, a price-to-earnings ratio of 16.26, a PEG ratio of 0.96 and a beta of 0.48. The company has a current ratio of 1.54, a quick ratio of 1.07 and a debt-to-equity ratio of 1.74. Kroger has a 12-month low of $44.48 and a 12-month high of $63.59.

Kroger (NYSE:KR) last issued its quarterly earnings data on Thursday, December 5th. The company reported $0.98 EPS for the quarter, beating analysts’ consensus estimates of $0.97 by $0.01. Kroger had a net margin of 1.85% and a return on equity of 27.73%. The firm had revenue of $33.63 billion for the quarter, compared to analysts’ expectations of $34.19 billion. During the same period in the prior year, the company earned $0.95 EPS. The firm’s revenue was down 1.0% on a year-over-year basis. Research analysts expect that Kroger will post 4.44 earnings per share for the current year.

Kroger declared that its board has approved a stock buyback plan on Wednesday, December 11th that authorizes the company to buyback $7.50 billion in outstanding shares. This buyback authorization authorizes the company to reacquire up to 16.9% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s management believes its shares are undervalued.

Insiders Place Their Bets

In other Kroger news, SVP Yael Cosset sold 20,000 shares of the business’s stock in a transaction on Tuesday, December 10th. The shares were sold at an average price of $58.39, for a total transaction of $1,167,800.00. Following the sale, the senior vice president now directly owns 144,620 shares of the company’s stock, valued at $8,444,361.80. The trade was a 12.15 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Stuart Aitken sold 132,627 shares of Kroger stock in a transaction dated Thursday, December 12th. The shares were sold at an average price of $63.18, for a total value of $8,379,373.86. Following the transaction, the senior vice president now directly owns 217,523 shares in the company, valued at approximately $13,743,103.14. This trade represents a 37.88 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 188,438 shares of company stock worth $11,657,598. 1.40% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Kroger

Several hedge funds and other institutional investors have recently added to or reduced their stakes in KR. Altshuler Shaham Ltd acquired a new stake in shares of Kroger in the second quarter worth $28,000. Northwest Investment Counselors LLC acquired a new stake in shares of Kroger in the 3rd quarter valued at $34,000. Newbridge Financial Services Group Inc. grew its position in Kroger by 218.8% during the 2nd quarter. Newbridge Financial Services Group Inc. now owns 714 shares of the company’s stock worth $36,000 after acquiring an additional 490 shares during the last quarter. Harbor Capital Advisors Inc. acquired a new stake in Kroger in the 3rd quarter valued at about $40,000. Finally, Capital Performance Advisors LLP bought a new stake in shares of Kroger during the third quarter worth $43,000. Institutional investors own 80.93% of the company’s stock.

Kroger Company Profile

The Kroger Co operates as a food and drug retailer in the United States. The company operates combination food and drug stores, multi-department stores, marketplace stores, and price impact warehouses. Its combination food and drug stores offer natural food and organic sections, pharmacies, general merchandise, pet centers, fresh seafood, and organic produce; and multi-department stores provide apparel, home fashion and furnishings, outdoor living, electronics, automotive products, and toys.